Problem
Textbook: Essentials of Business Law and the Legal Environment. 13th Edition
Chapter 12:
I. In consideration of $1,800 paid to him by Joyce, Hill gave Joyce a written option to purchase his house for $180,000 on or before April 1. Prior to April 1, Hill verbally agreed to extend the option until July 1. On May 18, Hill, known to Joyce, sold the house to Gray, who was ignorant of the unrecorded option. On May 20, Joyce sent an acceptance to Hill, who received it on May 25. Is there a contract between Joyce and Hill? Explain.
II. i. Ann owed $2,500 to Barry for services Barry rendered to Ann. The debt was due June 30, 2017. In March 2018, the debt was still unpaid. Barry was in urgent need of ready cash and told Ann that if she would pay $1,500 on the debt at once, Barry would release her from the balance. Ann paid $1,500 and stated to Barry that all claims had been paid in full. In August 2018, Barry demanded the unpaid balance and subsequently sued Ann for $1,000. Result?
ii. Modify the facts in by assuming that Barry gave Ann a written receipt stating that all claims had been paid in full. Result?
iii. Modify the facts in by assuming that Ann owed Barry the $2,500 on Ann's purchase of a motorcycle from Barry. Result?